The Obama administration is looking for ways it can circumvent Congress in order to prevent American businesses from re-incorporating in other countries so they don't have to pay U.S. taxes.
But if the president acts on his own, he could open himself up to charges he's rewriting the tax code and overstepping his authority.
Both parties agree something should be done about the problem, but Republicans say the United States needs to cut its corporate tax rate which is the highest in the industrialized world.
The controversy comes as President Barack Obama's approval rating hits an all-time low.
According to an NBC News-Wall Street Journal poll, 40 percent of Americans approve of the president's job performance, while 47 percent disapprove.
Meanwhile, Congress only has a 14 percent approval rating.
Seventy-one percent say America's economic problems are due to the inability of elected officials in Washington to get things done to improve the economy.